Accounting Multiple Choice Question – 11 June 2021

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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A business ends its financial year on 31 December. The stock was not counted until 10 January when it was found to be £104,000 at cost. The following transactions took place from 1 to 10 January. 

  • stock purchased  —  £16,000
  • stock sold at selling price  —  £15,000

Stock is sold at a mark-up of 25 %. 

What was the value of stock at 31 December? 

Select ONE answer:

  1. £99,250
  2. £100,000
  3. £108,000
  4. £108,750

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

  1. Not correct
  2. Correct ==> £104,000 – £16,000 + (£15,000 / 1.25)
  3. Not correct
  4. Not correct

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